Ethereum price crashes as so-called killers continue to muster investor support
Ethereum’s losses continue to mount, with the digital asset currently exhibiting 24-hour losses in excess of 6%.
- While Ethereum’s year-to-date (YTD) gains stand at a respectable +300%, alternatives like Solana have booked YTD profits of +7,800%.
- Ethereum’s (ETH) gas fee woes have continued to mount, with the price of minting a single non-fungible token (NFT) rising as high as 3 ETH on the network recently.
- The total value locked (TVL) across the Ethereum network recently exceeded $100 billion.
Following closely in the footsteps of Bitcoin, the world’s second-largest cryptocurrency by total market capitalization, Ethereum, continues to face increasing bearish pressure, resulting in the altcoin dropping from $3,500 to $3,200 within 90-odd minutes. At press time, ETH is trading for $3,068.
While many had expected Ethereum to completely decouple from Bitcoin and forge its own path this year, it seems as though the flagship crypto is still largely driving the market. The term “Ethereum killer” has garnered traction online, with a number of rival platforms posting impressive gains over the last 30-60 days.
Alternative projects such as Cardano, Solana, Binance Smart Chain, Polkadot and Terra — all of whom feature full smart-contract functionality while offering minimal gas fees — have been an absolute tear of the course of 2021.
For example, the value of SOL, Solana’s native crypto token, has risen by a whopping 300% over the last three months while posting year-to-date (YTD) profits of more than 7,800% gains. In comparison, ETH’s 90-day and YTD gains stand at just 63.77% and 385.36%, respectively. Not only that, it took Ethereum more than half a decade to garner a market capitalization of around $400 billion, while Solana’s total cap has already scaled up to $47.
Ethereum’s operational woes still persist
Despite Ethereum’s much-hyped transition to ETH2.0, all set to occur sometime next year, the network can currently process only 15-25 transactions per second, all while featuring an extremely poor data throughput ratio. And with the digital asset landscape evolving at an extremely rapid pace, a number of ETH alternatives have continued to emerge, allowing for mass volumes of information to be processed almost instantly.
Bloated transaction fees continue to haunt the Ethereum ecosystem despite the successful deployment of the recently concluded London Hard Fork, which sought to regulate the currency’s gas fee levels. During peak traffic levels, the cost of mining an NFT on the platform rose as high as 3 ETH recently, a figure that is actually higher than what many NFTs cost.
Demand continues to rise anyway
As per data made available by analytics provider DappRadar, the total volume locked across all ETH-based DeFi protocols recently scaled past the all-important $100 billion threshold. In comparison, the Binance Smart Chain (BSC) currently has a total of $18 billion locked across its ecosystem, a figure that is less than 20% of Ethereum’s currency TVL.
Disclosure: The author owns a range of cryptocurrencies at the time of writing